Page 143 - UUBO Deal Academy 2020 - Materials

Nigeria has Supportive regulation for mini-grid

developers

Regulation for mini-grids in Nigeria are favorable to developers. In preparation for NEP, Nigeria

has passed regulations that provide investors with certainty over future revenues/compensation

Permitting Tariff Grid Arrival Protection

• For mini-grids below 100kW, • Tariff calculated using the • If a DISCO extends network to
permitting process optional Multi Year Tariff Order (MYTO) an isolated mini-grid, operator

• Registration required Methodology designed for can either:
mini-grids • Convert asset to an inter-
• Developer relinquishes grid
arrival protection • 15-year cost reflective tariff connected mini-grid
with limited yearly reviews • Transfer assets for
• For isolated mini-grids over and major 5-year reviews compensation
100kW, the permit application
includes: • Tariff set using building block • No compensation applicable to
methodology registered Mini-Grids
• Community-developer
agreement • OPEX and overhead • In extension scenario,
• NERC confirmation the mini- • CAPEX recoup over useful registered mini-grid needs to
grid will not interfere with lives of assets decommission and relocate
grid expansion • Allowed return on capital within 2 months after
• Written consent of local invested commencement of grid supply
DISCO (if mini-grid is in 5
year expansion plan)
• Proof area is unserved

• Land acquisition/lease
• Health and safety form

01 • E&S requirements